Why the Federal Reserve is pouring money into the financial system

Post by 29_29 » Fri, Sep 20, 2019, 4:42 PM UTC

jigglesniggle wrote: post #55

freejulian85 wrote: post #30

The money absolutely impacts the economy and the individual. If the fed were not providing this printed money to the banks, the banks would need to do some combination of the following to increase liquidity: 1) Increase interest rates to attract new deposits 2) Sell assets — such as foreclosed homes now in the banks possession With house prices at all time highs and interest rates at all time lows, both 1&2 sound gre…

No matter how many times it is explained, at the end of the day people who are not me and who have no real valid claim to free money are being given free money and allowed to profit off of it.

Post by freejulian85 » Fri, Sep 20, 2019, 4:44 PM UTC

LatteLazy wrote: post #79

freejulian85 wrote: post #30

The money absolutely impacts the economy and the individual. If the fed were not providing this printed money to the banks, the banks would need to do some combination of the following to increase liquidity: 1) Increase interest rates to attract new deposits 2) Sell assets — such as foreclosed homes now in the banks possession With house prices at all time highs and interest rates at all time lows, both 1&2 sound gre…

The majority of people already own houses and have mortgages. That means they don't want interest rates to go up. So the Fed will not allow that. That's it, that is the reason banks were bailed out in the first place. That's the reason they're being subsidised now (plus lots of cheap money pushes up the stock market and spurs investment and looks good at election time). This isn't about economics. It's about politics…

Post by michalu » Fri, Sep 20, 2019, 4:49 PM UTC

29_29 wrote: post #81

jigglesniggle wrote: post #55

Earlier quoted context omitted.

No matter how many times it is explained, at the end of the day people who are not me and who have no real valid claim to free money are being given free money and allowed to profit off of it.

I was talking about the two levers the Fed has to guide the economy at work - Printing Money and Lowering interest rates (as described by Ray Dalio https://youtu.be/PHe0bXAIuk0 ). My coworker starry eyed, looked at me and said, "What about Quantitative Easing?". I responded that is printing money. I think the issue is, these concepts are given difficult sounding names, so people do not question their ethics. I'm not…

Post by 29_29 » Fri, Sep 20, 2019, 4:56 PM UTC

michalu wrote: post #85

29_29 wrote: post #81

Earlier quoted context omitted.

I was talking about the two levers the Fed has to guide the economy at work - Printing Money and Lowering interest rates (as described by Ray Dalio https://youtu.be/PHe0bXAIuk0 ). My coworker starry eyed, looked at me and said, "What about Quantitative Easing?". I responded that is printing money. I think the issue is, these concepts are given difficult sounding names, so people do not question their ethics. I'm not…

Except that "Quantitative Easing" is NOT "printing money"... it's just media who dubbed it "printing money" as it is a more clickbaity term that works better for driving traffic to the advertisement infested pages.

Post by throw0101a » Fri, Sep 20, 2019, 5:06 PM UTC

BuckRogers wrote: post #80

freejulian85 wrote: post #30

The money absolutely impacts the economy and the individual. If the fed were not providing this printed money to the banks, the banks would need to do some combination of the following to increase liquidity: 1) Increase interest rates to attract new deposits 2) Sell assets — such as foreclosed homes now in the banks possession With house prices at all time highs and interest rates at all time lows, both 1&2 sound gre…

It's stealing money out of everyone's pockets to keep the banks going. Devalues the existing currency already in circulation. I love the obsession with keeping the system going, if the system is cyclical and flawed for human beings, maybe we shouldn't base the system that feeds, clothes and houses humanity on a craps table. The more of this sort of news that comes up the closer I listen to Richard D. Wolff.